Coalition blamed for job losses in banking

LABOUR FINANCE spokeswoman Joan Burton has accused the Government of being “aimless and rudderless” in dealing with employment in the banking sector, and claimed “we are on the brink of losing thousands of jobs”.

However, Tánaiste Mary Coughlan insisted the financial services sector would continue to be a very important area in job creation. She added that “I have been working with the financial services sector and the union representatives since I was appointed as Minister for Enterprise, Trade and Employment” and “we are working at new opportunities in the context of the financial services sector”.

Ms Burton told the Dáil “there is a crisis of employment in banking where a number of foreign banks are poised . . . to leave Ireland with consequent serious loss of employment in the banking sector, as well as deleveraging and loss of employment in the six guaranteed banks”.

She said “this is potentially a massive loss of employment in addition to what has happened to Halifax”. The Government was “aimless and rudderless regarding the crisis of employment in banking”.

Referring to Minister for Finance Brian Lenihan’s announcement that “he is to devolve the management of banking and restructuring to the National Treasury Management Agency”, Ms Burton asked when he would resolve the issue “as to who is in charge of looking at employment in the banking sector”.

Ms Coughlan said she had given an assurance “as did the Minister that political responsibility will remain with the Minister for Finance”. She said that “per capita we have the greatest presence in the financial services sector in the world. It will continue to be a very important asset in the creation and support of employment here”.

Earlier, she told Labour leader Eamon Gilmore that Bank of Scotland Ireland had been in discussions with the Department of Finance for some time, but “it was not in a position to continue with the banking facilities it provided in this country”, with the loss of 750 jobs. “It is important to note that it will retain 850 people in this country,” she added.